In June, there was a drop year-over-year in new home closings in the Nashville, TN market, a drop following an increase in May 2016. Closings went from 616 in June 2015 to 613 in June 2016. This came on the heels of a 13.6% boost in May from the year earlier.
A total of 6,774 new homes were sold during the 12 months that ended in June, down from 6,777 for the year that ended in May.
New home closings accounted for 13.4% of overall housing closings. A year ago, 12.8% of total closings were new home closings. Following a year-over-year rise in May, closings of new and existing homes declined year-over-year in June.
Pricing and Mortgage Trends
The average price of new homes was $379,173 per unit in June, up 8.3%from a year earlier. This hike is smaller than the 10.6% bump in May year-over-year.
There was a surge year-over-year in the average mortgage size on new homes along with new home prices. In June 2016, average mortgage size rose 7.1% from a year earlier to $307,371. Average mortgage size grew 10.6% in May 2016 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings climbed from 77.1% of new closings in June 2015 to 84.2% of closings in June 2016. At the same time, the share of new home closings belonging to attached units slid to 15.8% of closings from 22.9% of closings.
For all new homes sold, the average unit size jumped 1.5% year-over-year to 2,618 square feet in June 2016. The average size of newly sold homes moved from 2,471 square feet in May 2015 to 2,469 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 8.1% of closings, below 11.5% a year earlier. The percentage of existing home closings involving foreclosures fell to 3.5% in June from 5.2% a year earlier while REO closings as a percentage of existing home closings dropped to 4.6% from 6.3% a year earlier.